Health Law

EMR Adoption Concerns

By Helen Oscislawski

Concerns continue to mount regarding the recent IRS memorandum declaring that nonprofit hospitals can share their e-health record software and support with physicians without losing their tax-exempt status. A recent report from Leerink Swann & Company contends that a heightened competitive environment in urban areas will be the result of the memorandum declaration, as hospitals vie to attract surgery and other hospital-based procedures. The report predicts that under the relaxed Stark Law, physician practices might delay an EMR purchase in hopes of local hospitals picking up the tab. In addition, hospitals may choose to only work with larger EMR vendors, potentially locking smaller vendors out of the marketplace. The report also notes that increased price competition and discounting among EMR vendors overall has resulted in lower profits.

Full post as published by HIPAA Health Law & Technology on August 08, 2007 (boomark / email).